ITV

Tag: AIM

  • Bang in the Middle creates campaign to show magazine popularity

    Bang in the Middle creates campaign to show magazine popularity

    MUMBAI: The popular belief is that readership of magazines is declining, and is declining possibly faster than newspapers. The new IRS 2017 numbers indicate a stupendous growth in magazine readership. Magazines almost doubled the total readership from 40 million in IRS 2014 to 78 million in the latest IRS 2017. The growth has come from the urban areas, which added 22 million readers; and also rural India added 17 million readers. That is a whopping 95 per cent growth in the total readership of magazines in India, and this growth is coming only from print and does not take into consideration the online portals. The total readership of newspapers also registered a growth during the same period, of 40 per cent.

    Association of Indian Magazines (AIM) briefed agency Bang in the Middle to create a campaign that puts this 95 per cent growth in sharp focus. The campaign is devised to showcase the dramatic growth in readership.

    For the agency, the creative challenge was large, the campaign could not be descriptive that just informed the readers about growth in readership. The campaign has to make the reader stop and drive the feeling that they knew reading magazine had never gone out of fashion.

    The campaign is designed around the intrigue of number 95 per cent. The six ad campaigns build the growth in readership by making the ads contextual to the reader segments.

    Speaking about the campaign, AIM President R Rajmohan says, “We at the association knew that magazine readership is very robust and when the new numbers were released it only added to our confidence. AIM took this opportunity to build on the habit of reading magazines and drive its relevance to both readers and advertisers.”

    Bang in the Middle managing partner and CCO Prathap Suthan adds, “The brief was sharp and singular. Let the world know that total magazine readership has grown 95 per cent. Big growth. Big number. Big picture. Big story. And all of that came alive in the campaign. We didn’t have to get creative for creative’s sake. The number was dramatic by itself. We just had to make sure the number come through bold. With a small witty statistic to add in some wit, and with a hidden image inside the big 95 per cent that hinted and revealed a hidden consumer story. The execution too worked to make it topical for different magazine genres.”

    Association of Indian Magazines (AIM) is the national magazine association in India and is affiliated to the global industry association, International Federation of the Periodical Press (FIPP). AIM members include all the top magazine publishers of the country.

  • Archive of Indian Music to digitise and preserve old and rare gramophone records

    Archive of Indian Music to digitise and preserve old and rare gramophone records

    NEW DELHI: An ‘Archive of Indian Music’ (AIM) has been established in the Indira Gandhi National Centre for the Arts in a unique first-of-its kind effort to digitise and preserve old and rare gramophone records.

     

    This is because many of these rare records are on the verge of destruction and would be lost forever without timely action.

     

    The Archive was launched by External Affairs Minister Salman Khurshid in the presence of renowned classical dance exponent and AIM Advisory board member Padma Vibhushan Dr. Sonal Mansingh, historian and archivist Dr. Boria Majumdar, IGNCA Member Secretary Dipali Khanna, and renowned author/historian and founder-trustee of AIM Vikram Sampath.

     

    AIM is the brain-child of Bangalore based author/historian and Sahitya Academy winner, Vikram Sampath and has been established with the generous help of T V Mohandas Pai, chairman of Manipal Global Education.

     

    The main objective of AIM is to create the first digital sound archive of India and disseminate the content freely among all music lovers through an online portal and through innovative ways like audio exhibitions, listening kiosks, guided listening sessions etc. and by taking it to the youth in schools and colleges and giving them a new perspective of looking at Indian history – through sound. 

     

    The range of gramophone records that will be restored include Hindustani and Carnatic classical music, Folk music, Early Cinema, Theatre, Speeches of great leaders of the country and voices of common Indians that were recorded starting 1902.

    Pai believes that ‘AIM is a brilliant initiative to refurbish the rich musical tradition left behind by our ancestors, it is a unique concept that provides us with an opportunity to access the rich audio records that we have inherited and we are extremely proud of. In this day where only material gains matter to people, I am delighted to see a young man like Sampath who has worked on this with unparalleled passion and zeal and hence I came forward readily to support his dream and help it materialize.” 

    Sampath added, “India’s musical inheritance is a larger aspect of its identity in the world of music. AIM is an intellectual property created to save these vintage recordings for the future generations to know and be proud of the work created by the musical geniuses of our country. It breaks my heart to see this valuable cultural inheritance rot in the most despicable manner in flea markets and Kabadi shops across India. On a war-footing, we hope to reverse this trend and have set ambitious targets for ourselves – including restoration of 100,000 records within the next five years and construction of a National Sound Archive of India in Bangalore, with parallel centers in other parts of India. Equally important is disseminating this archived material for the public at large as it is the treasure that every Indian has inherited and has a rightful access to”

    Established in 2011, the Trust has set up an office in association with the Manipal Centre for Philosophy and Humanities in Bangalore and imported state-of-the-art machinery to digitise old gramophone records.

    The website of AIM www.archiveofindianmusic.org features around 200 artistes and nearly 1000 tracks at present – all of which can be accessed completely freely and sitting at home. Rare tracks including Gandhiji’s Spiritual Message that he recorded in 1931 in England, the country’s first recording by Gauhar Jaan in 1902, Tagore reciting his Bengali poetry, the first recording of the National Anthem by the Viswa Bharati Chorus, the first recording of M S Subbulakshmi as a child of nine years are just a few of the valuable gems in the website. The Archive has already collected nearly 10,000 old and vintage gramophone shellac and vinyl plates from various parts of India for purposes of restoration.

    AIM has trustees from all over India and is guided by an advisory board comprising of some of the most eminent artistes of the country – filmmaker Shyam Benegal, danseuse Sonal Man Singh, Chinmaya Gharekhan of IGNCA, Bombay Jayashri, Dr. Jayanthi Kumaresh, Pt. Vijay Kichlu, VAK Ranga Rao, Alarmel Valli, Dr. Shyamala G Bhave, Lalith Rao, Nandini Ramani, VAK Ranga Rao, Arundhati Ghosh of IFA, and Bhaskar Mitra of Sangeet Ashram Kolkata.

  • Eros plans $250 mn public float on NYSE, to delist from AIM

    Eros plans $250 mn public float on NYSE, to delist from AIM

    MUMBAI: Eros International Plc is planning a $250 million public float in the New York Stock Exchange while delisting from the Alternative Investment Market of the London Stock Exchange.

    The filmed entertainment company has filed with the United States Securities and Exchange Commission for an initial public offering of its A Ordinary Shares to raise up to $250 million.

    Eros said it decided to move to the US capital market as it offers access to additional capital on more favourable terms and increases liquidity. “It will also offer more relevant peer group and broader analyst coverage,” Eros said in its filing.

    The number of shares to be offered and the price range for the offering have not yet been determined.

    Eros has appointed Deutsche Bank Securities, BofA Merrill Lynch, Citigroup and UBS Securities LLC as joint book-runners for the offering.

    The company plans to use the proceeds from the proposed IPO to fund new co-productions and acquisitions of Hindi and regional film catalogue content and film-related content. The IPO money will also be utilised to grow its digital distribution channel and strengthen other distribution channels.

    Eros, which was listed on Bombay Stock Exchange and National Stock Exchange in 2010, also revealed that it will not pay any dividends in the foreseeable future and intends to retain future earnings. The company has not declared any dividend since incorporation in 2006 as all profits have been retained and utilised to grow its business.

    For the fiscal 2011, the company‘s revenue grew to $164.6 million, from $149.7 million a year ago. Eros has posted revenue of $166.3 million for the nine months ended 31 December 2011, from $124.3 million in the same period of the earlier year.

    EBITDA increased to $58.6 million for fiscal 2011 from $53.2 million for fiscal 2010. It stood at $59.6 million for the nine months ended 31 December 2011 compared to $45.4 million a year ago.

    The aggregate outstanding debt of the company stood at $228.6 million as of 31 December 2011, with $16.2 million remaining available under existing financing arrangements, and cash and cash equivalents of $120 million.

    The company revealed that it will release over 270 new films over the next three fiscal years and has aggregated a film library of over 1,900 films, plus approximately 700 additional films for which it only holds digital rights.

    Eros also claimed that its international distribution network extends to over 50 countries, including US, UK, Germany, Poland, Russia, Indonesia, Malaysia, Taiwan, Japan, South Korea, China and Arabic speaking countries, where Indian films are released through dubbing in local languages.

    The company intends to list its common stock on the New York Stock Exchange under the symbol “Eros”.

  • ‘We aim to be among the top 3 studios in the country within 3 years’ : Viacom18 Motion Pictures chief operating officer Vikram Malhotra

    ‘We aim to be among the top 3 studios in the country within 3 years’ : Viacom18 Motion Pictures chief operating officer Vikram Malhotra

    Knocked down by a model that relied heavily on acquisitions, Network18 founder-promoter Raghav Bahl has reworked on the movie production business that he has moved to a joint venture company with Viacom as a partner.

     

    Having snapped up The Indian Film Company that was listed on London‘s Alternative Investment Market (AIM), Bahl will now have movies rolled out from Viacom18, the company that also houses Hindi general entertainment channel Colors, MTV India, Nick and Vh1.

     

    A cautious spender this time, Bahl has earmarked Rs 1.20 billion for a seven-movie slate that will run through early 2012. The peak funding requirement in a three-year horizon will be Rs 2.50 billion

     

    In an interview with Indiantelevision.com‘s Sibabrata Das, Viacom18 Motion Pictures chief operating officer Vikram Malhotra talks about the mistakes learnt from Studio18, the focus on building a sustainable capability and the company‘s revival plans.

     

    Excerpts:
     
     
    The Indian Film Company churned out several hits like Ghajini, Singh is Kinng, Jab We Met, Welcome and Golmaal Returns in the initial years. Why it suddenly collapsed and couldn‘t survive the downturn?
    TIFC had a great run in the first two years. Then came the downturn in the industry. The business model of acquisition was fraught with risks and it lost more value share than the others.
     

     
    One year of stupidity wiped out the hard work that TIFC had initially done. What did it do fundamentally wrong for this to happen?
    In 2006 and 2007 capital was easily available to the industry and the acquisition model suited the business environment at that time. But the risks are much higher than the market and the operating margins much thinner. In the changed climate, the model needed to be revisited.

     
     
    Was the team not capable to change in the changing times?
    Clearly, the team at that time chose to stick to the then existing model and could not read fully into where the market was heading. The motion pictures business is a dynamic and competitive one and your eye needs to be constantly on the ball. A large part of the focus at that time was on distribution and not on building capabilities to create and produce films. This industry needs a model that is fundamentally sound but agile enough to suit the operating environment.

     
     
    How is the business model more protected now?
    We have moved away from the old business model of trading and acquisitions. We won‘t be making first copy ready made acquisitions. We are de-risking by building IP and our own creation. Even in co-productions, we will be involved at every stage. We will be a streamlined organisation that is nimble footed and is focused on profitability, sustainability and capability. We are, in short, rebooting the business.
     

     
    Why was the movie business shifted to Viacom18 before working on a revival plan?
    I can‘t comment extensively on this as it happened before my time here. But for Viacom18 which is in the entertainment broadcasting space, the movie production business is only a logical extension – particularly when the business was being revisited. Movies are a fundamental part of the entertainment space in India.

     

    Studio18 is now rebranded as Viacom18 Motion Pictures. A linked advantage to this realignment of the business is the immense synergies that we will draw from the multiple media platforms that Viacom18 has.

     
    ‘We are 20-25% de-risked before entering into a movie project because of our integrated model. We have a good non-theatrical revenue opportunity with Colors, the upcoming movie channel, MTV and Nick‘   
     

     
    How much of the movie business is led by the need to feed content into Hindi general entertainment channel Colors, the upcoming Hindi movie channel, MTV and Nick?
    We are, in fact, 20-25 per cent de-risked before entering into a movie project because of our integrated model. We have a good non-theatrical revenue opportunity with Colors, the movie channel, MTV and Nick. Incidentally, Colors currently happens to be the leading acquirer of motion pictures content.

     
     
    Sources say the revival plan includes an investment of Rs 1.20 billion for the first line up of movies and a peak funding requirement of Rs 2.50 billion over three years. Why is Viacom18 taking such a cautious approach?
    I can‘t comment on the financials. But fundamentally, we are going to be prudent in capital spending. We have lined up a slate of seven movies through early 2012, with Players being the most expensive (sources say Rs 400 million upwards). We are doing four films with first time directors.

     

    We will kick off our slate with a rom-com titled ‘Tanu Weds Manu‘ that will hit the screens on 25 February. This will be followed by two films that are co-productions with Anurag Kashyap – Michael (Working Title) & Shaitan. These films are set for release in the first quarter of the next fiscal year.

     

    The roster also includes Gang of Waseeypur (2 Series), Buddah (starring Amitabh Bachchan) by Puri Jaganathan, and David Dhawan‘s Chashme Baddoor.

     

    We will weigh the financial success of each movie. The first two years will be a crucial build-up. In the third year, we will review the business and change track accordingly.
     

     
    Is this the best time to stage a comeback with the inflationary costs correcting to a great extent?
    Irrationality has definitely been thrown out of the window. There is a need for further correction in star costs but we will spend our pennies very carefully. Besides, our marketing costs will be 10-15 per cent lower due to the wide reach of our channels like Colors, MTV, Vh1 and Nick.
     

     
    How wide will the movie slate be?
    We are going to have a minimum threshold of six movie releases a year. We are in no hurry to deploy capital. We are in no hurry to produce the costliest movie. We are in a hurry to get it right. We are building our business brick-by-brick.

     
     
    Will you be producing smaller movies under a different brand name?
    An important part of the gameplan is to produce movies in the urban-youth genre under the brand of ‘Tipping Point Films‘. This kind of targeted movies will also be content for MTV. We have projects in the urban-youth genre in co-production with Irock Media.

     

    As for animation movies, we are evaluating them along with our partnership with Nick. But there is nothing concrete on this front.

     
     
    Is regional language movies on the agenda?
    We are very keenly watching the regional space, particularly Marathi and Bengali. The cultural and economic dynamics are different. We will spend the next few months understanding that market.
     

     

     
    Viacom18 has plans to launch Marathi and Bengali language entertainment channels. Will you wait till then before you decide on movie projects in these languages?
    The movie projects are not linked to the launch of the regional channels. While we will share a relationship with the channels if and when they come, we are not inter-dependent for the launch of regional language movies.

     
     
    What is the distribution gameplan?
    We will distribute our own movies. We have our outfits in Mumbai, Delhi and UP territories. The distribution network is being expanded to the South markets, Rajasthan and the North. We will also handle overseas distribution. We will continue to build on our backbone and take up other movies for distribution if the costs are rational. 

     
    Will you get into the home video segment as well?
    We are not entering this segment. The way consumption is happening is changing very fast – you have satellite release windows shortening, new media is growing and 3G is coming. Besides, one has to tackle piracy.

     
    How do you plan to scale up?
    The scale-up plan will involve creating franchise properties that will have a sliding cost model while upping box office revenues. Players is positioned as a franchise property. We plan to have 2-3 properties by 2012. We aim to be among the top three studios in the country within three years – at least in terms of profitability.

  • ‘The ability to de-risk is more now’ : UTV Motion Pictures chief executive officer Siddharth Roy Kapur

    ‘The ability to de-risk is more now’ : UTV Motion Pictures chief executive officer Siddharth Roy Kapur

    UTV has expanded its movie slate for the fiscal and is eyeing a revenue of Rs 4.5 billion from this segment, up 43 per cent from the year-ago period.

    Upping its operations over the years, UTV has a roster of 12 movies this fiscal. UTV‘s scale-up goal: to have a peak pipeline of 15 movies a year.

    Narrowing its risks, UTV has indulged in a high element of pre-sales activities. The environment has been conducive as prices for satellite TV telecast rights have ballooned with Viacom18 planning the launch of a Hindi movie channel next year. The syndication model, widely popular last year, is being thrown out of the window.

    After delisting from London‘s Alternative Investment Market (AIM), UTV Motion Pictures is not looking at raising further capital as the business has reached a self-generation mode.

    In an interview with Indiantelevision.com‘s Sibabrata Das, UTV Motion Pictures chief executive officer Siddharth Roy Kapur talks about the balance film studios need to perfect between scale and a de-risked strategy.

    Excerpts:

    Indian movie studios were talking of scale a few years back. Now de-risking seems to be the mantra. Is it because in the process of scale some of the studios burnt their fingers?
    Building scale and de-risking are not parallel processes. It is just that the ability to de-risk is more now with the overall slate of movies going up.

    But the trend is to lock in the music and satellite television telecast rights before the theatrical release of the movies. Haven‘t studios increased the pre-sales deals this fiscal?
    The opportunities have definitely increased as the market for satellite TV rights has heated up with a broadcaster planning to launch a Hindi movie channel. The syndication model, widely popular last year, is being thrown out of the window. As broadcasters are chasing exclusive rights, the rates have gone up. This is working out well for the broadcasters and the producers.

    Also, with a diversified and expanded slate, studios have been able to derive higher values. We at the early part of the fiscal, for instance, had locked in Rs 2.37 billion from pre-sales of different rights.

    Aren‘t you in the process sacrificing an upside potential?
    We are offered a premium even before the movie is out. And if we foresee a significant upside potential, we do not go for pre-sales. We decide on a film-to-film basis.

    We have also come out with new models. In case of Raajneeti, we did a satellite deal based on the theatrical performance of the film. We looked at higher slabs based on the performance index.

    But don‘t you have a de-risking approach for each movie?
    We have developed the ability to de-risk on each movie. As a strategy, we look at de-risking on the satellite and music rights front. On the theatrical distribution front, we prefer to handle it ourselves.

    With pre-sales opportunities on the rise, aren‘t you tempted to scale up further?
    We have managed to scale up to 12 movies a year and have a diversified slate in terms of genre and talent. We have a mix of movies ranging between as low as Rs 30 million and as high as a blockbuster can cost. We have the ability to release in 45 countries.

    As for the future, we are looking at a 12-15 movie slate. We feel that it is not a feasible model to scale up more if you are to maintain the same level of quality control.

    Around 50 per cent of the slate will be through co-productions. UTV will, however, handle the marketing and distribution of these movies.
    ‘We are looking at a 12-15 movie slate a year. We feel that it is not a feasible model to scale up more if you are to maintain the same level of quality control‘

    So are we going to see a slower growth in the top line?
    We are on course to achieve a turnover of Rs 4.5 billion this year (up from Rs 3.15 billion). There will be organic growth and we will also do bigger movies.

    With more multiplexes and digitisation coming up, there will be growth in theatrical revenues. We also don‘t see a softening in rates for satellite TV rights in the near future as broadcasters have planned for their growth.

    Our focus, though, will be on profitability. We are confident of posting a 20 per cent year-on-year bottom line growth for the next three years.

    UTV Motion Pictures delisted from London‘s Alternative Investment Market. Is it now looking at raising funds for its movie business?
    We are pretty much well funded and have no fund raising plan. The business has reached a self-generation mode.

    Is the slate firmed up for the next fiscal as well?
    We are sitting in a pretty position and expect to see strong growth in the next fiscal. We have only 3-4 titles to lock up. Our pre-planning is well in place. As a studio, we stand in a unique position as we are a producer and not a content aggregator.

    Is UTV looking at aggressively producing movies in regional languages, particularly Tamil and Telugu?
    We are keeping watch on how the regional play is emerging. But our focus will be totally on the Hindi slate. Strategically, Bollywood is our core business. We may do a one off movie in the regional space on a tactical basis.

    In the south, the game is riskier and the ability to de-risk lower. The theatrical dependence is huge in the south. The sensibilities are also different.

    In the revenue mix, how much does theatrical account for?
    The box office accounts for 55 per cent of the revenue mix, while 20-25 per cent comes from sale of satellite TV rights. Music accounts for 5-7 per cent, overseas for 7-10 per cent; home video for 3-5 per cent and the remaining comes from new media. Going ahead, theatrical will fall to 50 per cent while new media will increase.

    Piracy impacts our overseas home video revenues. We see that compensated over the years by the growth in the new media space. The launch of 3G in India will also augment our new media revenues.

    Has there been a correction on the cost front?
    Costs have fallen to a suitable level for the industry as a whole, but a lot more needs to be done.

    UTV has expressed concern over the rise in marketing costs. How far has the industry come together on this issue?
    There has been a 10-15 per cent increase in promotion and publicity expenses over last year. The industry spends around 50 per cent of the theatrical revenue for domestic marketing, if one calculates the net distributor share to each of the producers. Due to the competitive framework and the increase in media options, we tend to out-shout each other. We are advertising more than we need to.
    A meeting took place among some film producers and everyone seems to be committed to see that this gets corrected as it is affecting our profit margins. It is work in progress and a solution, hopefully, should be on sight soon.

    UTV has shied away from releasing films during the IPL Indian Premier League). Will you be more conscious to plan the movie releases in such a way that bumpiness does not happen from quarter to quarter?
    UTV will have some releases during the IPL this time. While we are looking at ways to ensure that bumpiness does not take place, the right release date is our top priority.

    Yash Raj Films is trying to create a segment for youth films. Do you think the industry has matured for a segmentation approach?
    The first task is to find a great story. This may or may not include some target groups. But the secret to success is working on interesting scripts. Working backwards is not always the solution.

  • ‘We want to be strategically well entrenched in the Bollywood market’ : Siddharth Roy – UTV Motion Pictures CEO

    ‘We want to be strategically well entrenched in the Bollywood market’ : Siddharth Roy – UTV Motion Pictures CEO

     

    UTV Motion Pictures Plc (UMP Plc) has emerged as one of the top film production companies, challenging established players in scale and box office hits across different genres and budgets. The roster includes Jodhaa Akbar, Race, Fashion and Mumbai Meri Jaan.

    Listed in Alternative Investment Market (AIM) of the London Stock Exchange, UMP has set its eyes on good scripts, filmmakers, and talent while scaling up. Taking a cautious approach on film acquisitions, the company’s focus has been to set up a good team and produce movies on their own.

    UMP has also attempted to line up an international IPR basket with movies like The Namesake and The Happening. The adventure has been mixed so far and 2009 could see a retrenchment of such plans, though a $2 million project is being produced singularly by UTV for the first time in the US.

    Riding with a series of hits, UMP targets a revenue of Rs 3-3.5 billion this fiscal. The company has also inked syndication deals with Zee and Colors to maximise revenue opportunities while retaining the first airings for UTV’s Hindi movie channel.

    Finding the turf too competitive and price-driven at this stage, UTV has exited the home video business. The company inked a deal with Moser Baer, licensing for five years the home video rights for 25 movies produced till June 2009.

    With Walt Disney an equity partner, UTV has grabbed the distribution rights of Disney’s Hollywood content for the Indian market. This has not halted UTV from entering into a string of relationships with Hollywood majors including Fox.

    In an interview with Sibabrata Das, UTV Motion Pictures CEO Siddharth Roy Kapur talks about the challenges that film producers face with pressure on star costs and RoI (return on investments) and how the company has grown into a powerhouse in such a short span of time.

    Excerpts:

    UTV has cut costs in its broadcasting operations due to economic slowdown. Will the motion pictures business see a similar scale back plan?
    We will maintain the same pace as we did in 2008. There is no scale back plan. We released 10 movies in 2008. For 2009, we have 15-18 movies in the release pipeline.

    The capital employed in the movie business till the first half of Fy’09 is Rs 7.26 billion. Will the deployment see the same pace?
    Yes, we will maintain that pace – or even deploy more capital. We could see some rationalisation in star prices and production costs. We have started talking to talent and they are being receptive. We are also trying to generate more efficiencies in the production process and in the print and publicity expenditure.

    The Namesake and The Happening has been UTV’s efforts to build an international IPR basket. Will 2009 see a retrenchment in these plans as we don’t hear of any movie with Will Smith or others kicking off in the year?
    We are making a $2 million film called Ex Terminators. This is the first time that UTV will be producing on its own a film in the US. We realise that holding an IPR for Hollywood movies has great value as the DVD market is very strong in the US. The threatical exploitation is, in any case, a perishable commodity. But we want to be strategically well entrenched in the Bollywood market. We will be involved in international projects on an opportunistic basis. We are still in talks with Will Smith and are trying to find the right script and movie to make with him.

    In a bid to scale up, several Indian film studios have burnt their fingers by acquiring movies at high cost. Has UTV consciously decided to stay out of such acquisitions?
    A few months ago, acquisition costs had really shot up, making it difficult to recover money from some projects. But studios have their own strategies as they are in different stages of life cycle. Our focus, though, has been to put in place a production and development team. We have also cemented a strong relationship with talent.

    Acquisition prices will see a change as we are entering a period of economic slowdown. Though we acquired two movies (Race and Kismat Konnection) out of the 10 that we released in 2008, it is not part of our overall business plan. Our strategy is to produce our own movies. We are not looking at acquisition to scale up.

    Do you see pressure on revenues this fiscal because of recession?
    We expect our turnover to grow to Rs 3-3.5 billion this fiscal. And in FY’10 we hope to notch up Rs 4-5 billion. This will not include the revenues from The Namesake and The Happening.

    ‘We could see some rationalisation in star prices and production costs. We have started talking to talent and they are being receptive‘

    How much did two of your biggest hits – Jodhaa Akbar and Race – contribute to the kitty?
    They accounted for 30 per cent of our total revenues in 2008. But we also had hits in Fashion, Welcome, Aamir, Mumbai Meri Jaan, Oye Lucky! Lucky Oye! and The Happening.

    Our business model is to produce a few big budget movies while lining up mid-range and small films. We do not want to put all our eggs into one basket. We make movies in different genres, with different makers, and in different budgets. We are developing various labels to address different segments. The common thrust across all the segments is to have quality that is really consistent.

    Will the RoI improve in the coming years?
    The RoI for studios is dicey. While for single producers it is good, for distributors it is difficult. For us, it falls in the 10-15 per cent range. It should stay similar in FY’09. Cost structures (star cost) make any change in RoI difficult.

    UTV Motion Pictures did a deal with Disney to distribute their Hollywood content in India. How big a revenue opportunity will this throw up?
    India is a small market for Hollywood content. We will be paid a commission by Disney for disitributing the movies. We want to maintain the revenue opportunities with more prints and language dubs.

    Walt Disney has done a co-production with Yash Raj Films. But despite having a stake, why haven’t they gone ahead with a joint Bollywood movie project with UTV?
    We are talking to them on various scripts.

    Why did UTV decide to exit the home video business?
    We want to focus in the content creation and aggregation business. We will be in the theatrical distribution business because we want to have a presence in the last mile to the exhibition theatre. There is tremendous competition in the home video segment and based on commercial and strategic considerations, we decided to license our home video rights to Moser Baer for the next five years. Moser Baer will have the rights to all our movies that are released till June 2009.

    We will handle the home video business in overseas markets and have offices in US, UK and Dubai.

    Will we see a more aggressive regional movie lineup from UTV in 2009?
    Mainstream film producers getting into regional cinema will happen, but it will not be their main activity. Regional language films are heavily dependent on theatrical revenues. Satellite TV and home video rights, in fact, are sold together and form a minor portion of the revenue mix. Though the launch of regional channels has led to a rise in revenues from TV rights, it is still not large enough for us to justify making more movies in this space.
    ‘For us, the RoI falls in the 10-15 per cent range. Cost structures (star cost) make any change in RoI difficult‘

    Do Bollywood films make a more strong multiple revenue stream?
    Theatrical accounts for 55-60 per cent of the total revenue kitty while satellite rights make up 15 per cent and home video 5-7 per cent. Music and overseas rights contribute 10 per cent each. Going forward, home video and music will increase while satellite rights will fall as broadcasters come to terms with the slowdown in the economy.
    Will UTV continue to do syndication deals?
    We have done syndication deals with Zee and Colors. We will continue with the syndication model as we have our own Hindi movie channel. Unless, of course, we get a very good pricing for a 3-year or 5-year deal.
    Will UTV’s big drive in 2009 be scaling up?
    Our focus in 2008 was to get the team in place and work with right scripts and talent while scaling up. We will continue to build on that in 2009. We will explore all revenue opportunities including new ones like pay-per-view (PPV) on DTH. We offered Oye Lucky! Lucky Oye to DTH operators on PPV mode within a short time of theatrical release. This is a massive opportuinity in future and we intend to properly monetise the satellite market in a big way.
    UTV has invested in gaming companies. How are you exploiting the new media opportunities?
    We have mobile gaming for all our movies. For developing console gaming, it would require a long lead time and we do not have the product yet for it.
  • ‘NDTV is adequately funded to support its expansion’ : Narayan Rao – NDTV Group CEO KVL

    ‘NDTV is adequately funded to support its expansion’ : Narayan Rao – NDTV Group CEO KVL

     NDTV Ltd is on an expansion overdrive. In over a year, it has launched a slate of channels and moved beyond news into the lucrative Hindi general entertainment space.

     

    The company has attracted NBC Universal to pump in $150 million for an effective indirect holding of 26 per cent stake in NDTV Networks Plc. Further capital infusion of $120 million has come from a clutch of investors.

     

    NDTV’s stake in the joint venture company with Malaysia-based Astro has increased from 20 per cent to 30 per cent. The company has also launched NDTV Arabia to tap customised channels in international markets.

     

    Shepherding this growth has been NDTV Group CEO KVL Narayan Rao. In an interview with Indiantelevision.com’s Sibabrata Das, Rao chalks out the company’s expansion plans and the need for the group to consolidate its operations.

     

    Excerpts:

    Is NDTV floating a joint venture company with The Hindu Group to launch a Chennai city-centric channel?
    We are setting up a joint venture company with The Hindu Group where we will hold 51 per cent. The Hindu Group will have the balance 49 per cent and the JV will launch MetroNation Chennai in the next 3-4 months. Hindu is a reputed brand at the regional and national level. So we decided to have a content and commercial relationship. It was a natural gravitation towards each other.

    Will we see NDTV get into more such deals with print owners to tap regional markets?
    Regional news is not something on our radar. Our area of expertise is in English and Hindi language news. Our strategy is to do city-centric channels.

    Are the MetroNation channels being transferred to a subsidiary company called NDTV News Ltd?
    The intent is there to have MetroNation as a subsidiarised company. Since it has separate business requirements, we have got a chief executive officer for it. A distinct entity will bring in greater efficiencies.

    NDTV ended last fiscal with a consolidated loss of Rs 1.86 billion. When do we see a turnaround?
    We are in the stage of incubating various businesses. We have seen exponential growth over the last one year and have expanded into the non-news segment as well.

     

    We forayed into the Hindi general entertainment space with NDTV Imagine in January this year and have just launched Imagine Showbiz. We launched MetroNation in Delhi last year and it is doing well in terms of audience and reach. Now our focus will be to monetise this.

     

    We have already obtained licence for the World Cinema channel and will be launching it in the next couple of months. MetroNation in Mumbai will probably come up in the next fiscal. We have our plate full.

    Is NDTV spreading itself too thin?
    There are opportunities and media companies are exploiting this. There is, however, an expectation from the marketplace to grow the topline which is putting unnecessary pressure on several media firms. Nobody is given a chance to consolidate. We need to structure that expansion and build the management bandwidth.

     

    As for NDTV, we are adequately funded to support our expansion drives. We have have built the quality and ability to scale up. And in the news business, credibility is the only way to move forward.
    ‘Regional news is not something on our radar. Our area of expertise is in English and Hindi language news. Our strategy is to do city-centric channels‘

    Will NDTV Networks Plc. raise money by listing on the Alternative Investment Market (AIM) of the London Stock Exchange?
    NDTV Networks has raised $120 million from a clutch of investors including $20 million from Velocity Interactive Group (earlier called ComVentures). This is the holding company for the verticals including NDTV Imagine Ltd, NDTV Lifestyle, NDTV Convergence, Labs and NGEN Media Services (50 per cent). We have decided that it is better to build the businesses rather than go for an initial listing.

    NBC Universal has the option to increase its stake from 26 per cent to 50 per cent. Will NDTV part with majority in its non-news company?
    NBC Universal has put in $150 million to subscribe to shares of our Dutch subsidiary company which will give it an effective indirect holding of 26 per cent in NDTV Networks. We will never part with control. The other investors are in NDTV Networks.

    Colors has made a strong debut. Will this affect the break even period of NDTV Imagine which reportedly has a funding support of $106 million?
    NDTV Imagine is well on track and is growing steadily. The funding is adequate to take it to EBITDA positive stage. I can’t talk about other GECs.

    While the trend in an entertainment bouquet is to have a GEC and a Hindi movie channel, NDTV Imagine Ltd has launched a niche channel in Showbiz through a joint venture partner. What is the holding structure and potential for this channel?
    NDTV Imagine Ltd will hold 51 per cent in the JV and the balance 49 per cent will be with Cinestar. It is a growing segment and has tremendous potential.

     

    The launch of a Hindi movie channel is also in the pipeline. We are already in the process of acquiring movies. We are also going to be present in film production.

    NDTV’s consolidated revenue was at Rs 3.66 billion for FY’08. What contributed to this 31 per cent jump in turnover over the year-ago period?
    NDTV 24X7 and NDTV Profit have seen strong growth. NDTV India’s revenues, however, are not growing at the same pace because of the editorial positioning it has opted to take.

    Isn’t there a temptation to take NDTV India the tabloid route as many Hindi channels have successfully done to grow audiences?
    Going the tabloid route is not our strength. That is not our USP. NDTV India is holding on to revenue because of quality. We believe in the long run, good news will prevail and more audiences will come in.

    How is the joint venture with Malaysia-based Astro faring?
    The venture has already launched channels in Indonesia and Malaysia. We were given 20 per cent stake against a fee that we were to charge Astro for our services. Our stake in the joint venture is going up to 30 per cent.
    NDTV Emerging Markets is a subsidiary company which launched NDTV Arabia. Are we going to see more such customised channels being launched in other countries through this company?
    NDTV Arabia will now break into local news bands. It is our first venture into the Middle East and Africa as a customised channel. Yes, NDTV Emerging Markets will launch more such channels in other international markets to provide local news content. It is part of our international expansion plan to reach out to new target audiences.
    NBC Universal’s investment of $150 million for 26 per cent stake in NDTV’s Dutch subsidiary company puts the valuation at Rs 24.2 billion. The market cap of NDTV Ltd, which includes the news channels as well, was marginally higher at Rs 24.5 bn (July-end). Since the true value is not captured, is this the reason why NDTV Ltd is planning to de-merge the company into “news related businesses” and “non news businesses?”
    The aim is to unlock shareholder value and to promote the focused growth of our various businesses. Consultants are working on this and we will evaluate various options after receiving their feedback.
  • NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    NDTV floats subsidiary in Netherlands; Q3 net profit up 85% at Rs 48.8 million

    MUMBAI: News major NDTV Ltd, while declaring an 85 per cent rise in net profits for the quarter, anounced that it has floated a subsidiary – NDTV Networks BV in Netherlands.

    This new company will wholly own NDTV Networks Plc and its underlying subsidiaries – NDTV Imagine, NDTV Lifestyle, NDTV Convergence and NDTV Labs and 50 per cent in NGEN Media Services. All these subsidiaries are currently wholly owned by their respective parents and would engage in implementing the new business initiatives to be undertaken by NDTV, the company said in a release.

    Indiantelevision.com had first reported that NDTV Group had floated Networks Plc, UK, which would play a big role in bringing in investments for the entertainment and other non news channels. The company had applied for Foreign Investment Promotion Board (FIPB). Reportedly, the approval is for pumping in $130-160 million in the form of foreign direct investment (FDI).

    Hindu Business Line has reported that the subsidiary would raise funds in the overseas market, particularly through listing on the Alternative Investment Market (AIM) segment of the London Stock Exchange. While $106 million would be invested into NDTV Imagine (a non-news Hindi mass entertainment channel), FDI to the tune of $25.23 million would be pumped into NDTV Lifestyle which would be engaged in the business of content production for TV channels dedicated to travel, food, fashion, shopping and health and wellness in India and abroad.

    NDTV Q3 net profit up 85 per cent at Rs 48.8 million

    Meanwhile, NDTV has reported 85 per cent rise in net profit to Rs 48.8 million in the third quarter ended 31 December 2006 against Rs 26.4 million in the year-ago period.

    Total income rose 15.21 per cent to Rs 793.8 million from Rs 689 million during the same period. The company’s operating profit margin dropped from 22.24 per cent to 17.77 per cent year on year.

    Profits and revenues rose despite huge incubation costs, the company said in a release.

    “NDTV’s Indonesian JV (Astro Awani) made profits this quarter within just six months of its launch. The channel is on track to launch its Malaysian channel shortly. The company has also launched operations in Australia and New Zealand,” the statement added.

  • AOL launches mobile browsing service

    AOL launches mobile browsing service

    MUMBAI:AOL announced the debut of new mobile information and location services, including a new addition to the industry-leading suite of mobile AOL Search services. The new offering is a mobile browsing service that automatically adapts web pages for mobile screens. The easy-to-use mobile browsing service can be used by wireless subscribers with web-enabled phones.

    According to a new survey AOL conducted with the Associated Press and Pew Research Center, 52 percent of adults keep their cell phone turned on all day, everyday, and 40 percent of those aged 18-29 are likely to drop their landline once and for all. The report reveals that more than 30 percent of adults want to search and browse the web from their cell phone, while 47 percent say that mobile maps and driving directions are a “must have” on the next phone they buy.

    AOL’s wireless group senior vice president of Products Eric Engstrom said,”We are committed to providing people with easy access to the web’s full range of information, location and communications services wherever they may go. We are pleased to be working with the nation’s leading carriers to provide their subscribers with our complete suite of popular and consumer-friendly offerings. Together, we are making it easy for people to stay connected to friends, family members and colleagues.”

    AOL’s new mobile browsing service has been seamlessly integrated into the existing suite of mobile AOL Search services — including web search, shopping search and local search — to make it easy for consumers to navigate the web and find anything they need from their mobile device, according to an official release. Mobile AOL Search Services, including the new advanced browsing services, are available via mobile browser at http://www.aol.com .

    The new browsing service also marks the successful expansion of AOL’s alliance with InfoGin Ltd., a pioneer of web to mobile content adaptation solutions. AOL uses InfoGin’s transcoding and content analysis technologies to extend the ease of desktop search and navigation to wireless devices, bringing a wealth of web resources to mobile users’ finger tips.

    Also, AOL is bringing its mobile portal services to Sprint subscribers nationwide. AOL’s mobile web portal is a wireless version of the new AOL.com portal (http://www.aol.com). It is a one-stop-shop that gives mobile users easy access to the newly enhanced mobile AOL Search, AIM, AOL Mail and AOL Pictures services as well as AOL’s news, entertainment, sports and weather content.

    Sprint subscribers now have full access to America’s most popular instant messaging community via downloadable mobile AIM applications or through the wireless web. Features include presence awareness via the mobile Buddy List feature, IM Forwarding and two-way desktop-to-mobile (IM2SMS) messaging services.To learn more about mobile AOL services available to Sprint subscribers, please go to http://www.aolmobile.com/sprint

    In a related announcement, AOL debuted MapQuest’s new web-enabled service making it easier for consumers to access MapQuest.com. Coming soon, MapQuest Navigator will enable consumers to access Global Positioning Service (GPS), turn-by-turn, voice-guided directions on their mobile phones.

    Consumers with web-enabled mobile phones can access MapQuest.com by going to http://wap.mapquest.com .MapQuest expects the MapQuest Navigator service to be available through major U.S. cell phone providers later this year. For more information, see http://www.mapquest.com/mobile.

    Other services coming soon from AOL include a new mobile pictures upload feature will allow AOL Pictures users (AOL members and AIM users alike) to automatically post photos taken with their mobile device to their AOL Pictures account, regardless of their wireless carrier. The feature will be enabled through the AOL Pictures website ( http://www.aol.com/pictures).

    AOL will also introduce mobile blogging capabilities that will enable consumers to automatically post pictures from their mobile device to their AOL Journal or AIM Blog.